BILL ANALYSIS


                                                    C.S.H.B. 1479
                                      By: Hilderbran (Barrientos)
                                                          Finance
                                                          5-16-95
                            Senate Committee Report (Substituted)
BACKGROUND

Four years ago, a rider to the appropriations bill allowed Texas
high school students who completed their graduation requirements in
three years to receive a tuition and fee waiver at an institution
of higher education and forgo their fourth year in high school. 
This provision expired two years ago.

PURPOSE

As proposed, C.S.H.B. 1479 provides a tuition and fee waiver at
institutions of higher education for certain Texas high school
students.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas Higher Education Coordinating Board under SECTION 2
(Sec. 56.209(a), Education Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 54D, Education Code, by adding Sections
54.212, 54.213, and 54.214, as follows:

     Sec.  54.212.  ONE-YEAR EXEMPTION FOR CERTAIN AFDC STUDENTS. 
     Exempts a certain student from the payment of tuition and fees
     for the first academic year in which the student enrolls at an
     institution of higher education (institution) if the student
     meets certain criteria.
     
     Sec.  54.213.  FUNDING EXEMPTIONS.  (a)  Authorizes an
     institution to fund tuition exemptions under Section 54.212 or
     54.213 from local funds or from funds appropriated to the
     institution.  Provides that an institution is not required to
     provide tuition exemptions beyond those funded through
     appropriations specifically designated for this purpose.
     
     (b)  Requires savings to the foundation school fund that
       occur as a result of the Early High School Graduation
       Scholarship program (program) created in Chapter 56K, and
       that are not required for the funding of state tuition
       credits under that program to be used to provide tuition
       exemptions under Section 54.212.  Requires payment of funds
       under this subsection to be made in the manner provided by
       Section 56.207 for tuition credits under Chapter 56K.
       
     SECTION 2.     Amends Chapter 56, Education Code, by adding Subchapter
K, as follows:

                SUBCHAPTER K.  EARLY HIGH SCHOOL 
                  GRADUATION SCHOLARSHIP PROGRAM

     Sec.  56.201.  PROGRAM NAME.  Sets forth the name of the
     program.
     
     Sec.  56.202.  PURPOSE.  (a)  Sets forth reasons for the
     creation of the program.
     
     (b)  Dedicates a portion of the savings to the Foundation
       School Program that occur as a result of the program to
       state tuition credits provided by the program.
       
     Sec.  56.203.  ELIGIBLE PERSON.  Sets forth criteria for a
     person to be eligible for the program.
     
     Sec.  56.204.  ENTITLEMENT; MATCHING CREDIT.  (a)  Entitles an
     eligible person under the program to $1,000 in state tuition
     credits at a Texas public or private institution of higher
     education.
     
     (b)  Provides that the use of a credit at a Texas private
       institution is contingent on a private institution's
       agreement to match the state tuition credit.
       
       (c)  Provides that a person eligible for a tuition credit
       under the tuition credit program authorized by law, who did
       not receive a credit under that program is eligible for and
       entitled to $1,000 in state tuition credits under this
       subchapter.  Provides that this subsection expires September
       1, 2005.
            
     Sec.  56.205.  ISSUANCE OF CERTIFICATE.  Requires the Texas
     Higher Education Coordinating Board (coordinating board) to
     provide a certificate for state tuition credits to an eligible
     person.
     
     Sec.  56.206.  USE OF TUITION CREDIT.  (a)  Requires the
     institution to apply to the person's tuition charges for the
     enrollment period a certain amount on enrollment of an
     eligible person in an eligible institution.
     
     (b)  Requires a private institution to apply the state
       tuition credit and the matching credit required by Section
       56.204(b) in equal amounts.
       
       (c)  Requires the institution to report certain information
       to the coordinating board.
       
            Sec.  56.207.  PAYMENT OF TUITION CREDIT.  (a)  Requires the
     coordinating board to distribute to the institution the amount
     of the state tuition credit applied by the institution.
     
     (b)  Requires the coordinating board to submit a report that
       includes certain information to the commissioner of
       education (commissioner) at least once each year.
       
       (c)  Requires the commissioner to transfer to the
       coordinating board, from funds appropriated for the
       Foundation School Program, an amount sufficient to reimburse
       the coordinating board for amounts disbursed in payment of
       state tuition credits during the period covered by the
       report.
       
            Sec.  56.208.  FUNDING.  (a)  Provides that the program is
     financed under the Foundation School Program.  Provides that
     funding for the state tuition credits is not subject to the
     provisions of Sections 16.254(e)-(k).
     
     (b)  Requires the commissioner to reduce the total annual
       amount of foundation school fund payments made to a school
       district by a certain amount.
       
       (c)  Requires a school district that does not receive
       foundation school fund payments during a year in which the
       commissioner would otherwise withhold money from the
       district under Subsection (b) to remit an amount equal to
       the amount that would be withheld under Subsection (b) to
       the comptroller for deposit to the credit of the foundation
       school fund.
       
       (d)  Requires the commissioner and the foundation school
       fund budget committee to consider the costs of the program
       in estimating the funds needed for program purposes.
       
     Sec.  56.209.  ADOPTION AND DISTRIBUTION OF RULES.  (a) 
     Requires the coordinating board to adopt rules to administer
     this subchapter.
     
     (b)  Requires the coordinating board to distribute copies of
       all rules adopted under this subchapter to each eligible
       institution and to each school district.
       
SECTION 3. Provides that this Act applies beginning with tuition
and fees collected for the 1995 fall semester.

SECTION 4. Emergency clause.
           Effective date:  upon passage.